ALK - Travel stocks trend higher on dovish demand forecasts
In a repeat of late April’s trend, an optimistic outlook from United Airlines Holdings (NASDAQ:UAL +7.2%) is leading travel stocks higher on Tuesday. The air carrier provided an update in Tuesday’s pre-market hours, stating that an already rebounding demand picture has continued to improve. The marked improvement motivated the company to raise revenue forecasts for the full year. The commentary on stronger than expected demand is particularly notable given United Airlines (UAL) CEO Scott Kirby called the demand environment “the strongest it's been in 30 years” only about a month ago. Shares of United Airlines (UAL +7.2%) gained over 7% in afternoon trading, building back from some turbulence felt in mid-may. The optimistic outlook for summer travel spread beyond simply United's stock however. Indeed, the update encouraged much of not only the US airline sector, but travel services and hospitality to tick higher on Tuesday. U.S. carriers: American Airlines (AAL +6.1%),
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Travel stocks trend higher on dovish demand forecasts